Declares Monthly Distributions of $0.067 Per Share for a Total of
$0.20 Per Share for Fourth Fiscal Quarter 2014, Equal to Annualized
Distribution Rate of $0.80 Per Share

February 10, 2014 05:33 PM Eastern Standard Time

RYE BROOK, N.Y.--(BUSINESS WIRE)--Full Circle Capital Corporation (Nasdaq:FULL) (the “Company”) today
announced its financial results for the second quarter of fiscal 2014
ended December 31, 2013.

Financial Highlights for the Second Quarter of
Fiscal 2014

Total investment income was $4.0 million, an increase of 29.0%
compared to $3.1 million for the three months ended December 31, 2012
and a 24.3% increase compared to $3.2 million for the three months
ended September 30, 2013.

Net investment income was $1.9 million, or $0.25 per share, compared
to $1.5 million, or $0.22 per share, for the three months ended
December 31, 2012 and compared to $1.2 million, or $0.16 per share,
for the three months ended September 30, 2013.

Net realized and unrealized losses were $3.1 million, or $0.41 per
share. The change in unrealized loss on investments was $2.6 million,
or $0.34 per share. Of the change in unrealized loss, $0.4 million was
related to the reversal of previously unrealized gains related to
iMedx Inc., CSL Operating LLC, Coast Plating, Inc., and Employment
Plus, Inc. This $0.4 million was recognized as fee income during the
three months ended December 31, 2013.

Realized losses were $0.5 million, or $0.07 per share. Combined with
net investment income, this resulted in a net decrease in net assets
from operations of $1.2 million, or $0.16 per share.

Net asset value of $7.09 per share at December 31, 2013.

Total portfolio investments at December 31, 2013 were $75.9 million
compared to $77.6 million at December 31, 2012 and $94.6 million at
September 30, 2013.

Weighted average portfolio interest rate was 12.48% at December 31,
2013.

New originations and expansion of facilities to existing borrowers
were $5.0 million, including one new portfolio company. Repayments and
realizations totaled $19.7 million during the three month period.

At December 31, 2013, 90% of portfolio company investments were first
lien senior secured loans.

On February 5, 2014, the Board of Directors declared monthly
distributions for the fourth quarter of fiscal 2014 as follows:

Record Date

Payment Date

Per Share Amount

April 30, 2014

May 15, 2014

$0.067

May 30, 2014

June 13, 2014

$0.067

June 30, 2014

July 15, 2014

$0.067

These distributions equate to a $0.804 annualized distribution rate, or
a current annualized yield of 10.88%, based on the closing price of the
Company’s common stock of $7.39 per share on February 7, 2014.

Management Commentary

“For the second quarter, net investment income exceeded distributions on
a 53% increase in net investment income over the prior sequential
quarter,” said John Stuart, Chairman and Co-Chief Executive Officer of
Full Circle Capital Corporation. “We received $19.7 million in
repayments and realizations from five portfolio companies during the
three month period which drove fee income to $1.2 million and total net
investment income to $1.9 million. Including our recent portfolio
realizations, we ended the quarter with debt investments in 18 portfolio
companies, which represented a 12.48% weighted average interest rate at
the end of the second quarter. While our results were negatively
impacted by portfolio valuations, the portfolio remains highly
collateralized with 90% invested in first lien senior secured debt and
78% of our loans currently bear floating rates. We believe that recent
realizations as well as the liquidity from both our expanded line of
credit and the January 2014 raise of $13.5 million in new equity
capital, provides us with ample resources to execute on the increased
opportunity set resulting from the recent appointment of Gregg Felton as
Co-CEO and President.”

Mr. Felton commented, "We have broadened our origination strategy to
include transactions structured as convertible debt as well as secondary
purchases at a discount to par value. The three investments made during
and subsequent to quarter end are examples of this broader approach. We
believe these investments offer the opportunity for both current income
and capital appreciation. We are actively growing an attractive pipeline
of transactions and are well positioned to execute given our current
liquidity.”

Second Quarter Fiscal 2014 Results

The Company’s net asset value at December 31, 2013 was $7.09 per share.
During the quarter, the Company generated $2.8 million of interest
income, of which 100% was paid in cash. Income from fees, dividends and
other sources totaled $1.2 million. The Company recorded net investment
income of $1.9 million, or $0.25 per share. Net realized and unrealized
losses were $3.1 million, or $0.41 per share; the majority of these
losses were unrealized and related to fair value adjustments at quarter
end. Net decrease in net assets from operations was $1.2 million, or
$0.16 per share. Per share amounts for the quarter ended December 31,
2013 are based on approximately 7.6 million weighted average shares
outstanding.

The change in unrealized loss on investments was $2.6 million, or $0.34
per share, for the three months ended December 31, 2013. The change in
unrealized depreciation is primarily due to the depreciation of the
senior secured term loans to ProGrade Ammo Group, LLC and Modular
Process Control, LLC of $1.3 million and $0.5 million, respectively. Of
the change in unrealized loss, $0.4 million was related to the reversal
of previously unrealized gains related to iMedx Inc., CSL Operating LLC,
Coast Plating, Inc., and Employment Plus, Inc. This $0.4 million was
recognized as fee income during the three months ended December 31, 2013
and is reflected as Other Income in the Statement of Operations. This
was partially offset by the $0.3 million appreciation of the senior
secured loans to Global Energy Efficiency Holdings, Inc. The overall
change in unrealized loss consisted of $2.3 million of net unrealized
depreciation on debt investments and $309,602 of net unrealized
depreciation on equity investments.

During the quarter, the Company originated $5.0 million in one new loan
facility. Repayments and realizations from five portfolio companies
totaled $19.7 million during the three month period.

At December 31, 2013, the Company’s portfolio included debt investments
in 18 companies. The average portfolio company debt investment at
December 31, 2013 was $3.9 million. The weighted average interest rate
on debt investments was 12.48%. At fair value, 90% of portfolio
investments were first lien loans, 2% were second lien loans and 8% were
equity investments. Approximately 78% of the debt investment portfolio,
at fair value, bore interest at floating rates. The loan-to-value ratio
on the Company’s loans was 71% at December 31, 2013, compared to 59% at
December 31, 2012 and 61% at September 30, 2013.

Subsequent Events

On January 14, 2014, the Company completed a follow-on public offering
of 1,650,000 shares of the Company’s common stock for gross proceeds of
approximately $11.8 million. On January 27, 2014, the underwriters
exercised in full their option to purchase 242,300 additional shares.
The exercise of the over-allotment resulted in the Company receiving an
additional $1.7 million in gross proceeds.

On January 15, 2014, the Company received gross proceeds of $7,664,074
relating to the full repayment of its senior secured credit facility and
the senior secured revolving loan with Global Energy Efficiency
Holdings, Inc. Of the $7,664,074 million in gross proceeds, $7,226,737
represented repayment of expenses, interest, and principal, at par, and
$437,337 represented prepayment fees and success fees.

On January 21, 2014, the Company invested $500,000 in warrants as part
of a $30 million dollar senior secured convertible note purchase
agreement with Advanced Cannabis Solutions, Inc. (ACS), a
non-residential property owner and provider of consulting services. The
agreement to purchase convertible notes is contingent upon ACS’
satisfaction of certain requirements. The convertible notes, when
funded, will bear interest at a fixed rate of 12.00% per annum and have
a final maturity of January 21, 2020. As of February 7, 2014, ACS’
common stock’s last sale on the OTC bulletin board was $12.32 per share.

On January 31, 2014, the Company purchased approximately $7.5 million
par amount of a $256.3 million senior secured credit facility to PEAKS
Trust 2009-1, a special purpose entity holding student loans, for
approximately $6.0 million. The senior secured credit facility is
guaranteed by ITT Educational Services, Inc., and bears interest at
LIBOR plus 5.50%, with a minimum LIBOR of 2.00% per annum and has a
final maturity of January 27, 2020.

Conference Call Details

Management will host a conference call to discuss these results on
Tuesday, February 11, 2014 at 10:00 a.m. ET. To participate in the
conference call, please call 866-305-6438 (domestic call-in) or
706-679-7161 (international call-in) and reference code # 67682701.

A telephone replay of the conference call will be available from 1:00
p.m. ET on February 11, 2014 until 11:59 p.m. ET on February 14, 2014 by
calling 855-859-2056 (domestic) or 404-537-3406 (international) and
entering confirmation # 67682701. An archived replay of the conference
call and slide presentation will also be available in the investor
relations section of the company’s website.

About Full Circle Capital Corporation

Full Circle Capital Corporation (www.fccapital.com)
is a closed-end investment company that has elected to be treated as a
business development company under the Investment Company Act of 1940.
Full Circle lends to and invests in senior secured loans and, to a
lesser extent, mezzanine loans and equity securities issued by lower
middle-market companies that operate in a diverse range of industries.
Full Circle’s investment objective is to generate both current income
and capital appreciation through debt and equity investments. For
additional information visit the company’s web site www.fccapital.com.

Forward-Looking Statements

This press release contains forward-looking statements which relate to
future events or Full Circle's future performance or financial
condition. Any statements that are not statements of historical fact
(including statements containing the words “believes,” “should,”
“plans,” “anticipates,” “expects,” “estimates” and similar expressions)
should also be considered to be forward-looking statements. These
forward-looking statements are not guarantees of future performance,
condition or results and involve a number of risks and uncertainties.
Actual results may differ materially from those in the forward-looking
statements as a result of a number of factors, including those described
from time to time in Full Circle's filings with the Securities and
Exchange Commission. Full Circle undertakes no duty to update any
forward-looking statements made herein.

FULL CIRCLE CAPITAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES

December 31,

June 30,

2013

2013

Unaudited

Audited

Assets

Control Investments at Fair Value (Cost of $19,682,970 and
$18,139,543, respectively)